By its Order No. OD-1057, dated 21 April 2017, the Bank of Russia revoked the banking licence from the Moscow-based credit institution Finars Bank (JSC) (Registration No. 2938) from 21 April 2017. According to the financial statements, as of 1 April 2017, Finars Bank (JSC) ranked 495th by assets in the Russian banking system. The credit institution is not a member of the deposit insurance system.
Finars Bank (JSC) was a settlement centre of one of the payment systems; however, the Bank of Russia did not categorise it as an important credit institution in the payment services market. The bank mainly conducted suspicious pass-through operations whose ultimate aim was “shadow” trading in cash money.
The credit institution’s heavy involvement in suspicious operations over a long period of time and increase in their volume, coupled by a persistent failure to comply with restrictions introduced by the supervisor, pointed to the unwillingness on the part of the bank’s management and owners to normalise its activities. Under the circumstances, the Bank of Russia took a decision to withdraw Finars Bank (JSC) off the banking services market.
The Bank of Russia took such an extreme measure — revocation of the banking licence — because of the credit institution’s failure to comply with federal banking laws and Bank of Russia regulations, repeated violations within a year of Bank of Russia requirements stipulated by Article 7 (excluding Clause 3 of Article 7) of the Federal Law ’On Countering the Legalisation (Laundering) of Criminally Obtained Incomes and the Financing of Terrorism’ as well as Bank of Russia regulations issued in accordance with the said law and application of the measures stipulated by the Federal Law ’On the Central Bank of the Russian Federation (Bank of Russia)’, taking into account a real threat to the interests of creditors.
By its Order No. OD-1058, dated 21 April 2017, the Bank of Russia has appointed a provisional administration to Finars Bank (JSC) for the period until the appointment of a receiver pursuant to the Federal Law ‘On Insolvency (Bankruptcy)’ or a liquidator under Article 23.1 of the Federal Law ‘On Banks and Banking Activities’. In accordance with federal laws, the powers of the credit institution’s executive bodies are suspended.